Editor's note: This brief was summarised by The Property AI Newsroom from a report by Property118. Read the original article for full details.
Landlord Survey Reveals Sharp Drop in Confidence Over Property Value Growth
A recent survey by Property118 has found that more than nine in ten landlords do not expect property values to outpace inflation over the next three years. The findings come from the Property118 Landlord Sentiment Survey conducted in Q2.
According to the survey, 48.7% of landlords expect property values to stagnate or fall behind inflation, while 43.3% believe values will only keep pace with inflation. Only 8% of respondents anticipate real-terms growth in property values during this period.
The report highlights that, for many years, the buy to let sector relied on the expectation of capital appreciation to justify investment, even as rental yields faced pressure from tax and regulatory changes. The new data suggests that this expectation has shifted significantly, with landlords now questioning whether property investment will deliver returns above inflation.
The survey also notes that this question was introduced for the first time in Q2, so there is no direct comparison with previous quarters. However, the findings align with other survey results indicating a growing intention among landlords to sell or exit the market.
For letting agents and inventory clerks, these results may signal changes in landlord behaviour, as experienced investors reconsider their portfolios in light of lower expectations for capital growth. The report suggests that landlords are now more focused on rental income to cover costs, given the reduced confidence in property value increases.
Source: Property118